Bidding wars drive up pay as City struggles to recruit professionals

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Intense competition for top executives in the City of London means workers are routinely being offered raises of more than 10pc to tempt them into new jobs - then 15pc or 20pc to stay putCredit:
John Sibley/REUTERS

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Bankers, accountants and financiers are cashing in on their valuable skills as a battle for talent means their companies are increasingly willing to engage in bidding wars to keep them from deserting.

As many as 80pc of candidates recruited by headhunters Morgan McKinley now get counter-offers from their existing employers, typically matching the offer from the hiring business but sometimes now even well above that level.

“This became very common in the second half of last year,” said Marcus Williams at the recruitment firm.

“We’ve seen counteroffers a lot more at the senior end, more at vice-president in investment banks, so as typical banding they see salaries of between £80,000 and £100,000....